What are S.H.I.P. Funds? (Ask B.E.).Q I am a single mother of four, and I was told that there is such a thing as S.H.I.P Funds for purchasing a home. Can you explain what they are and how they work?--S. Thompson Via the Internet A S.H.I.P. Funds refer to State Housing Initiatives Partnership programs, where lenders, builders, nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. groups, and real estate agents collaborate with a specific state to offer down payment and closing cost assistance to first-time home buyers with low incomes. S.H.I.P. is how these programs are referred to in the state of Florida, but many states offer similar assistance programs for low-income residents. Contact your state housing authority and ask about low-income, first-time home buyer assistance programs. (First-time home buyer means that you haven't owned a home in the last three years.) In Florida, the amount of funds offered for down payment and closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, varies from county to county, as does the maximum sale price and the type of home (e.g., single family home, condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. ) eligible for the funding. The income eligibility of the household applying for S.H.I.P. assistance varies from county to county as well. For example, to be eligible in Ocala, Florida Ocala is a city in Marion County, Florida, United States. As of 2004, the population recorded by the U.S. Census Bureau is 48,901.[1] It is the county seat of Marion CountyGR6. , a family of four must make no more than $33,300, but in Collier County, Florida Collier County is a county located in the U.S. state of Florida. As of 2000, the population was 251,377. The U.S. Census Bureau 2006 estimate for the county is 314,649 [1]. Its county seat is Naples, Florida6. , the amount jumps to $54,400. In most cases, those who want to qualify for assistance must meet income requirements, have been employed in the same job or field for one year, have a satisfactory credit rating, and be prequalified by the issuing mortgage lender. It is also up to the person applying for funding to find a property that is eligible for S.H.I.P. assistance. If all these requirements are fulfilled ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. , the mortgage lender will reserve S.H.I.P. Funds in your name, which will be distributed when you close on your property. Mail your money management questions to Ask B.E., BLACK ENTERPRISE, 130 Fifth Ave., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011, or send an e-mail to scottm@blackenterprise.com. |
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